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Alasdair Macleod: Monetary inflation -- the next step
By Alasdair Macleod
GoldMoney, St. Helier, Jersey, Channel Islands
Thursday, February 25, 2021
Earlier this month the U.S. Treasury released its plan to flood the financial system with cash by reducing its balance on its general account at the Fed by $1.229 trillion by not renewing an equivalent amount of T-Bills.
Separately, the Fed will continue with its quantitative easing at the rate of $120 billion every month, which, combined with the Treasury's plans, means an inflation of the money supply totalling $1.829 trillion [(120x5 months) + 929 + 300] is in progress from the beginning of this month until the end of June. This does not include the planned stimulus of $1.9 trillion.
... Dispatch continues below ...
American Lithium Named
to TSX Venture Exchange Venture 50
via Globe Newswire and Yahoo Finance
Wednesday, February 24, 2021
VANCOUVER, British Columbia, Canada -- American Lithium Corp. (TSX-V: LI, OTCQB: LIACF, Frankfurt: 5LA1) has been named to the 2021 TSX Venture 50, an annual ranking of top-performing listed companies on the TSX Venture Exchange.
The 2021 TSX Venture 50 is an annual ranking of the top-performing listed companies from five industry sectors: clean technology and life sciences, diversified industries, energy, mining, and technology. The selection is based on year-over-year performance across three equally weighted criteria: market capitalization growth, share price appreciation, and trading volume for the year ended December 31, 2020.
"We are very pleased to be recognized in the 2021 TSX Venture 50," said Michael Kobler, CEO of American Lithium. "The past year has seen American Lithium reach new highs as we continue to forge ahead on our large-scale TLC Lithium Project in Nevada and now that we have agreed to acquire Plateau Energy Metals to create a leading diversified lithium development company. On behalf of our Board of Directors, I thank our team at American Lithium for their hard work and our shareholders for their support along the way." ...
... For the remainder of the announcement:
The banks do not have the balance-sheet capacity to take this expansion on board, and if they are forced to turn new depositors away, it will almost certainly be by charging for deposits (imposing negative interest rates). That being the case, not only will the U.S. economy be flooded with unprecedented levels of inflated money, but commercial banks will implement negative rates without the Fed having to do so.
To prevent this outcome, the Fed will have to extend the temporary exemption from the supplementary leverage ratio (SLR) due to end in March and remove the $30 billion reverse repo limit on money funds, allowing them all to access the Fed's reverse repo facility and avoid "breaking the buck."
At this late stage there is no sign of the SLR being extended, and a policy with respect to money funds may or might not be forthcoming.
But with the Bank of England signaling that it will introduce negative rates this year, leaving the dollar as the only major Western currency at the zero-bound, it appears that the solution is indeed to flood the markets with dollars and force the U.S. commercial banks to adopt negative rates on the Fed's behalf.
And with dollar term rates already rising, not only is it likely to be too late for the Fed to succeed with an "Operation Twist," but the bubbles in financial markets risk being undermined by rising bond yields, taking the dollar down with it in the style of a John Law combination bubble and currency collapse.
Gold does not discount this outcome and so it can be expected to drive gold's fiat price substantially higher. ...
... For the remainder of the analysis:
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Toast to a free gold market
with great GATA-label wine
Wine carrying the label of the Gold Anti-Trust Action Committee, cases of which were awarded to three lucky donors in GATA's recent fundraising campaign, are now available for purchase by the case from Fay J Winery LLC in Texarkana, Texas. Each case has 12 bottles and the cost is $240, which includes shipping via Federal Express.
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